Thomas Cook (India) Limited CONTENTS Board of Directors ............................................................................................................................................................. 1 Directors’ Report ................................................................................................................................................................ 2-5 Annexure to the Directors’ Report .................................................................................................................................... 6 The Management Discussion and Analysis Report .......................................................................................................... 7-8 Report of the Directors on Corporate Governance .......................................................................................................... 9-23 Report of Various Committees of the Board ................................................................................................................... 24-27 Auditors’ Certificate on Corporate Governance ................................................................................................................ 28 Auditors’ Report on Consolidated Financial Statements ................................................................................................. 29 Consolidated Financial Statements ................................................................................................................................... 30-43 Consolidated Cash Flow Statement and Auditors’ Certificate ......................................................................................... 44 Auditors’ Report ................................................................................................................................................................. 45-47 Balance Sheet ..................................................................................................................................................................... 48 Profit & Loss Account ........................................................................................................................................................ 49 67 Schedules ............................................................................................................................................................................ 50-63 Cash Flow Statement and Auditors’ Certificate ................................................................................................................ 64 Information regarding Subsidiaries .................................................................................................................................. 65 Subsidiaries: • Hindustan Cargo Ltd. ..................................................................................................................................... 66-82 • India Alive Tours Ltd. ..................................................................................................................................... 83 • Thomas Cook Tours Ltd. ................................................................................................................................ 84 • Indian Horizon Travel & Tours Ltd................................................................................................................ 85 • TC (Mauritius) Holding Company Ltd. ........................................................................................................... 86-87 • TC (Mauritius) Operations Company Ltd. ...................................................................................................... 88-90 Ten Financial Years’ Performance ..................................................................................................................................... 91 Charts .................................................................................................................................................................................. 92-93 Enclosures: • Notice • Attendance Slip and Form of Proxy Thomas Cook (India) Limited BOARD OF DIRECTORS P. P. MADHAVJI Auditors Chairman Lovelock & Lewes M. L. APTE Advocates & Solicitors H. S. BILLIMORIA Crawford Bayley & Co. D. P. ROY Desai & Diwanji (till 17-10-2001) R. SUNDARARAMAN Principal Bankers (w.e.f. 17-10-2001) The Hongkong & Shanghai Banking Corporation Ltd. K. DIGVIJAY SINGH Standard Chartered Grindlays Bank Ltd. State Bank of Bikaner & Jaipur JOHN DONALDSON State Bank of India (till 25-04-2001) Standard Chartered Bank LESTER PORTER 1 ALAN STEWART Registered Office Thomas Cook Building, IAN AILLES Dr. Dadabhai Naoroji Road, (w.e.f. 08-06-2001) Mumbai 400 001 A.M. KAKKAR Chief Executive Officer Registrar and Share & Managing Director Transfer Agents Tata Share Registry Ltd. MADHAVAN MENON Army & Navy Building, Executive Director - Foreign Exchange 148, M. G. Road, Fort, Mumbai 400 001 P. SREEKUMAR Executive Director - Finance (w.e.f. 16-04-2001) Website SECRETARY : www.thomascook.co.in R. R. KENKARE Head of Legal & Company Secretary Thomas Cook (India) Limited DIRECTORS REPORT TO THE MEMBERS: During the year the industry faced impact is well known. Your Your Directors have pleasure in several challenges. The Gujarat Company has undertaken several presenting the Twenty-Fifth Annual earthquake, the stock market crash, measures to maintain the Report, together with the Balance the September 11 attacks in the U.S. profitability of the Company and Sheet and Profit and Loss Account and the general slow down in the such measures has had positive for the 10 months period ended economy adversely affected the impact on the performance of the 31st October, 2001. travel & leisure industry and its company. Thomas Cook (I) Limited (TCIL) Financial Results Operations & Results: Your Company’s income grew 4.22% Consolidated 10 months 12 months Figures for Jan/Oct Jan/Dec compared to the corresponding 10 months (2001) (2000) period of the previous year. Profits Jan/Oct before tax and exceptional item (2001) grew 12.37% during the year. The Rupees in lakhs requirement to provide for deferred Revenues 7751.40 7439.47 8566.12 taxation became mandatory during Profit before exceptional item this period and your company has and Taxation 1898.16 1900.20 2029.27 accounted for such provisions. Write down of investment 277.16 277.16 Nil Similarly, profit after tax and before Provision for Taxation 708.38 682.11 786.21 exceptional item for the Excess provision for corresponding period, after 2 Taxation for earlier years Written back Nil Nil 121.99 providing for deferred taxation in Provision for deferred both periods, grew by 10.28%. Taxation 29.43 28.93 * Despite the downtrend in the Profit after Taxation 883.19 912.00 1365.05 economy, your company could Transferred to Reserve achieve these results by active U/sec. 80 HHD of the participation by our customers, Income Tax Act, 1961 175.00 175.00 130.00 employees and other stakeholders Transferred to General in the various measures and Reserve 94.46 91.20 1000.00 initiatives adopted by the Company. Proposed Dividend 408.33 408.33 481.25 The earning per share of the EPS before exceptional item 7.96 8.15 9.40 company is 8.15 compared to 7.39 EPS after exceptional item 6.06 6.25 9.40 for the corresponding period of the *Deferred taxation for the year ended 2000 amounts to Rs. 71.31 lakhs previous year. The EPS before Comparative Data for 10 months exceptional item based on 31st October 2001 31st October 2000 Increase consolidated profit and loss account (Rs. in lakhs) % for the period is 7.96 Income 7439.47 7138.43 4.22 Dividend : Expenditure 5539.27 5447.37 1.69 Net profit before Your Directors are pleased to exceptional item and tax 1900.20 1691.06 12.37 recommend a dividend of 28%. The Net profit after tax and dividend absorbs Rs. 40,833,332/- before exceptional item and deferred tax 1218.09 1137.54 7.08 General Reserve : Net profit after taxes Your Directors have resolved to and before exceptional item 1189.16 1078.12 10.30 transfer Rs. 91,20,076/- to General Earnings per share 8.15 7.39 10.28 Reserve out of the profits of the Thomas Cook (India) Limited Company. In view of the transfers, c) that the Directors have taken (Blue, Yellow and White) and was the total reserves are at Rs. proper and sufficient care for launched globally. 76,88,41,145/- as at 10-month the maintenance of adequate Your Company will roll out the new st period ended 31 October, 2001. accounting records in Logo in a phased manner across the accordance with the provisions Change in Financial Year : country. of the Act for safeguarding the Thomas Cook ( India ) Ltd : The company changed its Financial assets of the Company and for year for the books so as to close on preventing and detecting fraud Operations in Mauritius st st 31 October instead of 31 and other irregularities. The Your Company commenced December each year. This would internal auditors have operations in Mauritius last year. It align the financial year for the conducted periodic audits to has performed well during the year. Company with that of the Thomas provide reasonable assurances It is planned to open a third branch Cook worldwide. that established policies and at Grand Baie area, a Tourist All the subsidiaries of the Company procedures of the company destination in the North of have changed their financial have been followed. However it Mauritius. must be recognized that there year to coincide with the TCIL Operations in Sri Lanka financial year. are